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A Medical investment opportunity in Victoria

Situated in the heart of a thriving economy, this two-level freestanding building has a 5-year lease plus option until 2032 providing excellent stability! The lease features CPI increases, and the tenant is responsible for all outgoings.

Our client was able to take advantage of the State Government's 50% discount on stamp duty. This investment not only taps into the thriving regional economy but also aligns with the highly sought-after investment class of 'medical.' The property recently underwent a $1.3 million renovation, enhancing its appeal and offering excellent depreciation benefits. Currently significantly under-rented, when compared to few other similar freehold buildings on this busy road.

This provides excellent security with the tenant, but also the opportunity capital growth upside at the market review in 2027.

Purchase Details
Asking Price
3700000
Purchase Price
3550000
Deposit (assuming
70
% debt)
1065000
Stamp Duty
107247.25
Building Report*
1000
Solicitor Cost*
8500
Valuation*
3000
Other Costs*
79195
Other Fees* (Depreciation
report, bank fees)
3700000
Total Cash Required
1263942.25
Purchase Price + Purchasing Cost
3748942.25
Net Annual Cash Flow Return
220000
Net Yield on Property
6.2
%
Net Yield Accounting for
Purchasing Costs
5.87
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1263942.25
Cost of Loan
(Assume
6.5
% pa on
70
% debt)
161525
Return of Equity
(Pure cash flow return)
4.63
%
Return of Equity with a
5% Capital Growth Rate:
18.67
%
Return of Equity with a
7% Capital Growth Rate:
24.29
%
Return of Equity
10% Capital Growth Rate:
32.71
%
*approximate number

Key Highlights

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